Palau’s economy is driven by tourism, fishing, and financial aid from the Compact of Free Association with the United States. The government prioritizes environmental conservation and sustainable tourism. Regulatory frameworks are improving but remain underdeveloped, particularly in foreign investment management. Society is small and cohesive, with a focus on cultural preservation. Education systems are robust, emphasizing skills for tourism and public service. Climate risks, including rising sea levels and typhoons, threaten infrastructure and livelihoods. Healthcare services are basic, with significant reliance on U.S. support for advanced care.
